Legal Definitions - undertenant

An undertenant is a legal term for a person or entity who leases property from an existing tenant, rather than directly from the original landlord. This arrangement is also commonly referred to as a sublease, and the undertenant is therefore also known as a sublessee. In such a scenario, the original tenant becomes the 'sublessor' to the undertenant, creating a secondary lease agreement. The undertenant's rights and obligations are typically governed by the terms of this secondary lease, which must also comply with the original lease agreement between the original tenant and the landlord.

Here are some examples to illustrate the concept of an undertenant:

• Example 1: Residential Sublease

  Maria signs a one-year lease for an apartment. Three months into her lease, she receives a temporary job offer in another city for six months. With her landlord's permission, Maria enters into an agreement with David, allowing him to live in and pay rent for her apartment for those six months. In this situation, David is the undertenant. He leases the apartment from Maria (the original tenant/sublessor), not directly from the building owner (the original landlord). Maria remains responsible to the original landlord for the full terms of her lease, even while David is living there.

• Example 2: Commercial Office Space

  A marketing firm, "Creative Campaigns Inc.," leases an entire floor of an office building for five years. After two years, the firm downsizes and finds itself with several unused offices. They decide to rent out a portion of their leased space, consisting of three offices and a small reception area, to a new graphic design startup, "Pixel Perfect Studio." "Pixel Perfect Studio" is the undertenant. They pay rent and adhere to the terms set by Creative Campaigns Inc., which acts as their sublessor. Creative Campaigns Inc. continues to pay rent for the entire floor to the building's owner.

• Example 3: Retail Space Sharing

  A large bookstore, "The Literary Nook," leases a significant retail space in a bustling shopping center. To enhance the customer experience and utilize some underused space near the entrance, The Literary Nook enters into an agreement with a local coffee vendor, "Daily Grind Coffee," allowing them to set up a small kiosk and seating area within the bookstore. Daily Grind Coffee pays a monthly fee to The Literary Nook for this arrangement. Here, Daily Grind Coffee is the undertenant, leasing a section of the space from The Literary Nook (the original tenant/sublessor), rather than directly from the shopping center's management.